Retail

What is Retail?
Retail is final stage of any economic activity. By
virtue of this fact, retail occupies an important
place in the word economy.

The word “Retail” has been derived from the

French word “Retaillier” which means to cut a
piece off or to break bulk.
Who then is a retailer?
A Retailer is any person, agency, a company or
an organization that is instrumental in reaching
the goods, merchandise and services to the final
consumer.
Definition of retailing
According to Philip Kotler: “Retailing includes all
the activities involved in selling to the final
consumers for personal, non-business use. A
retailer or retail store is any business enterprises
whole sale volume comes primarily from
retailing.

Retailer is someone who does retailing

Definition of retailer
A Retailer is any person, agency, a company or
an organization that is instrumental in reaching
the goods, merchandise and services to the final
consumer.
Function of Retailer:
From customer s point of view, the retailer
serves him by providing the goods that he needs
in the required assortment, at the required place
& time.
• First is utility regarding the form of a product
that is acceptable to the customer. The retailer
performs the function of storing the goods, &
providing us with an assortment of products in
various categories.
• He creates time utility by keeping the stores
open when the consumers prefer to shop.
Function continued..
• By being available at a convenient location, he
creates place utility.
• Finally, when the products is sold, ownership
utility is created.

The retailer serves the consumer by functioning

as a marketing intermediary & creating time,
place & ownership utility for the consumer.
Types of retailing
• Retailers range in size from small independent
kirana shops owners to big giant international
category shops.
• The Merchandise that they offer also varies from
foodstuff to drugs to apparel to flowers. Hence, it
is necessary to take a look at the formats that
have evolved in the west and are now evolving in
India.
Classification of Retailing
Classification of retailing

Store Based Non-Store Based

Form of Ownership Merchandise Offered

•Independent •Convenience Store
•Direct Selling
•Chain •Hypermarket
•Mail Order
•Franchise •Specialty store
•Telemarketing
•Leased Dept. •Dept. Store
•Auto Vending
•Consumer Coop •Single Price Store
•Factory Outlet
Store Based Retailing
• Store based retailing is wherein the retailer
operates from a store. This is a more common
form of retailing.
•  Further classified on the basis of Form of
Ownership and Merchandise Offered
 Form of Ownership
• Independent Retailer – He is one who owns and
operates only one retail outlet. Stores like the local
Baniya or kirana fall under this category (In the west
they are known as mom-n-pop stores). These have the
owner or the proprietor with a few family members
working as assistants.
•  A Chain Retailer - Also known as a corporate retail
chain. When 2 or more outlets are under a common
ownership it is called as a retail chain. These stores
are characterized by similarity in merchandise
offered, ambience, advertising and promotion
Form of Ownership
• Franchising - A franchise is a contractual agreement
between the franchiser and the franchisee which allows
the franchisee to conduct a business under an
established name, as per a particular Business format, in
return for a compensation
Franchising may be for a i. Product or a trademark or ii.
a business format franchising

• Leased Department - These are also termed as Shop-

in-shops. When a section of a department in a retail
store is leased/rented to an outside party, it is termed as
a leased department.
 
• Consumer Cooperatives - A consumer cooperative is
a retail institution owned by its member customers
 On the basis of Merchandise Offered
• Hypermarkets -Large self-service stores. Usually
very big and low price types, low service level. Offers
almost all kinds of products like food, non food
items, CD’s, DVD’s, Footwear etc with a depth in
product mix
• Specialty Stores -Focuses on a brand or a
particular category with high service level . Offers
narrow product line but very good depth
Non-Store Retailing
• Television Shopping - Details and usage of the
product is demonstrated on the television and
customer has to call a toll free number to place an
order.

• Electronic Retailing - This is done through

Information Kiosks. These Kiosks comprise of
computer terminals housed inside and a touch
screen on the outside provides customers with
product and company information and aid
purchases
Organized Retail
organized retail is nothing but a retail place all
the items are segregated and brought under one
roof